The following trial balance was drawn from the records of Havel Company as of October 1, year 2. Cash $16,000
Accounts receivable 60,000
Inventory 40,000
Store equipment 200,000
Accumulated depreciation $76,800
Accounts payable 72,000
Line of credit loan 100,000
Common stock 50,000
Retained earnings 17,200

Totals $316,000 $316,000

Required:
Based on the above information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November and December. The inventory balance as of October 1 was $40,000. Cost of goods sold for October is expected to be $72,000.